Federal jury returns a defense verdict in Copper Sands Homeowners Association’s case
A federal jury in Las Vegas returned a defense verdict Thursday in the Copper Sands Homeowners Association's breach-of-contract case against a California management company.
During closing arguments in the case Wednesday, lawyers for the HOA had asked for an $8.9 million verdict against Cannon Management.
The HOA had accused Cannon of breaching its management agreement by failing to maintain and repair the common areas of the community, located at 8101 W. Flamingo Road, and by failing to bill and collect adequate assessments for the maintenance and repair of the community.
According to court records, the property's 360 units were built as apartments in 1997. In 2004, the project was purchased by a San Diego investment company, Pacifica Enterprises Inc., in the name of its affiliate Copper Sands Realty LLC, which converted the apartments to condominiums.
Attorney Terry Wike, who represents the HOA, told jurors Wednesday that Cannon should have billed Copper Sands Realty $5.9 million for needed repairs but instead collected just $71,000. Wike said another $3 million is needed to pay for relocating residents during the repairs.
The HOA originally sued Copper Sands Realty in Clark County District Court in April 2008. In March 2010, the association added numerous defendants, including Cannon Management. The case was removed to federal court the following month, but only the single breach-of-contract claim against Cannon survived for trial.
Cannon attorney Robert Carlson told jurors on Wednesday that his client had no involvement in the construction, conversion or sale of the Copper Sands homes and did not cause the conditions that require repair.
According to court records, Cannon was property manager at Copper Sands from early 2005 to 2007.
U.S. District Judge Gloria Navarro presided over the trial, which began Jan. 4. The verdict was announced Thursday afternoon.
Contact Carri Geer Thevenot at cgeer@reviewjournal.com or 702-384-8710. Find her on Twitter: @CarriGeer
